- Bitcoin has gained more than 10 percent in the last 24 hours following Elon Musk clarity on Tesla accepting Bitcoin again.
- The CEO also confirmed that the company is still holding most of the $1.5 billion worth of BTC after selling 10 percent earlier in the year to test liquidity.
After some calm last week, Elon Musk on Sunday shared some positive news regarding Tesla accepting Bitcoin again. The CEO stated that Tesla would begin accepting Bitcoin when miners go 50 percent green. This was a positive development that encourages investors that Elon Musk hasn’t completely abandoned Bitcoin.
Musk further clarified that his company hasn’t sold any more Bitcoin since the Q1 10 percent sale. The CEO reiterated that the sale was made to confirm that Bitcoin has liquidity. The company at the time said that Bitcoin had proven this, with the sale swift and going unnoticed. At the start, Tesla was concerned that this could crash the market.
This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.
When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.
— Elon Musk (@elonmusk) June 13, 2021
It remains unclear how Elon Musk will confirm this since a majority of the Bitcoin community already believe that Bitcoin is green. The controversy over how green Bitcoin is will continue to split Musk and the community. Additionally, some market leaders have in the past speculated that Elon Musk was pressured by Tesla shareholders to halt Bitcoin payments.
Serial investor and TV personality Kevin O’Leary noted;
Elon was pressured, I believe, by the shareholders of Tesla to speak out about this because they live with sustainability committees, and they’re not on the side with Bitcoin being used as a currency to buy Tesla cars. And so they probably pressured him to make the statement he made,
If so, how will Elon be able to convince these investors to accept Bitcoin again?
Elon Musk still has pull on Bitcoin
Regardless of the uncertainty, this news has been received positively by the market. At the start of the week, Bitcoin has gained more than 10 percent. At the time of press, Bitcoin is staging a breakout with an eye on the $40,000 resistance. This will be a key test for the asset, setting the short term trend. If bulls can hold off the selling pressure, Bitcoin can push higher and set the $40,000 position as support. However, if there is selling pressure above this, Bitcoin will break down and return to the recent lows.
Bitcoin’s jump has pulled the rest of the market up with a majority of top altcoins gaining more than 5 percent. The total market cap has gained nearly 8 percent climbing above $1.6 trillion.